Fermented Food Holdings

Sauerkraut maker puts down roots in Wisconsin, expands

Fermented Food Holdings sees promise in state agriculture

Wisconsin, with its prolific production of cabbage, caught the eye of one of the world’s leading producers of sauerkraut.

Founded in 2021 and formerly based in Miami, Fermented Food Holdings wanted to be closer to its suppliers and establish lasting relationships. While it considered locating its headquarters in big cities such as Miami, Austin, and Denver, it was drawn by Wisconsin’s proximity to farmers.

In the end, it committed to investing $13 million in relocating its headquarters to Madison and expanding its Bear Creek facility in northeastern Wisconsin.

In a state that treasures its bratwurst and beer, sauerkraut making is a welcome addition.

Building a fermented food empire

The company’s primary business is the development, manufacturing, and distribution of natural fermented food products such as sauerkraut, pickles, and kimchi.

Its brands include Silver Floss, America’s best-selling sauerkraut; Bubbies refrigerated pickles; Saverne; Flanagan Farm; wildbrine; Hawthorne Foods; and Cortland Valley. The company ships to all 50 states and internationally.

Wisconsin is the nation’s fourth-largest cabbage producer, with major farms in Racine, Outagamie, Kenosha, and Waukesha counties. The company’s move enables Fermented Food Holdings to directly source its organic, fresh ingredients, something it was unable to rely on previously.

“A big motivation for us is to get closer to the source and strengthen our relationships with local firms,” said Jorge Azevedo, the company’s CEO. “We were buying from brokers, buying from farms that were certified organic—but we didn’t know the people growing the product. You couldn’t call up their cell phone and know the family who grew it for you. We find that connection to be very important.”

The company’s move comes at a time when demand for its products is soaring. Because of that market growth, Fermented Food Holdings decided to expand its Bear Creek facility, adding a new fermentation room, cooler, and production line that will increase its capacity by 20 million pounds of cabbage annually, a 20% hike. To help with the expansion and relocation, WEDC provided $500,000 in performance-based tax credits, which are contingent on job creation and capital investment.

“Fermented Food Holdings’ commitment to partnering with local farms, investing in local communities, and honoring Wisconsin’s deep agricultural heritage makes them a perfect fit for ours state’s world-class food and beverage industry,” said Missy Hughes, WEDC’s secretary and CEO.

The future is far from sour

The company’s investment will create 60 full-time jobs—41 in Bear Creek and 19 in Madison—and will support the state’s agricultural economy. The new jobs offer wages well above the state’s hourly average, providing an economic boost to Bear Creek, a town of 400. And the expansion honors the history of the century-old plant, which started as the Flanigan Brothers Pickling Company.

Azevedo said the proximity to local suppliers will ensure efficient production processes and deliver quality products.

“It’s a very simple, very healthy product and it’s one step away from the farm,” said Azevedo. “We love that we can be close to the small, very tight farming community that has been with us for decades.”